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ALA releases ebook business models

Washington, DC – Based on conversations with publishers and deliberations on the ebook market, the American Library Association (ALA) today released Ebook Business Models for Public Libraries, a report that describes general features and attributes of the current ebook environment and outlines constraints and restrictions of current business models. The report, which was created by the ALA Digital Content & Libraries Working Group (DCWG), suggests opportunities for publishers to showcase content through public libraries.

“Ebook publishing is expanding and evolving rapidly, and the terms under which ebooks are made available to libraries show wide variation and frequent change,” said DCWG co-chair Robert Wolven. “In this volatile period, no single business model will offer the best terms for all libraries or be adopted by all publishers or distributors. This report describes model terms libraries should look for in their dealings with ebook publishers and distributors, as well as conditions libraries should avoid.”

The DCWG recommends three basic attributes that should be found in any business model for ebooks:

• Inclusion of all titles: All ebook titles available for sale to the public should also be available to libraries.
• Enduring rights: Libraries should have the option to effectively own the ebooks they purchase, including the right to transfer them to another delivery platform and to continue to lend them indefinitely.
• Integration: Libraries need access to metadata and management tools provided by publishers to enhance the discovery of ebooks.

“ALA appreciates that realizing all of these attributes immediately may not be feasible, and a library may elect to do without one or more in return for more favorable terms in other areas, at least temporarily, but these features are ultimately essential to the library’s public role,” said ALA President Maureen Sullivan.

Nationwide, many libraries are facing constraints from publishers on how ebooks can be used, including: perpetuating the print model of one user per ebook license purchased; limiting the number of loans; variable pricing; delayed sale; and restrictions on consortial or interlibrary loans. Alternately, opportunities for publishers might include enhanced discovery, readers’ advisory, or even a major new sales channel for library patrons.

“The choices that libraries make today can profoundly impact future directions, so it is critical libraries are informed of their options and negotiate aggressively for the most favorable and flexible terms possible,” said Erika Linke, co-chair of the DCWG’s business models subgroup. “Thus, while the DCWG’s primary focus in the past months was to try to influence publishers, we wanted to share some of what we learned with the library community at large.”

“The DCWG will continue its advocacy on ebook business models for public libraries as it increases its focus on other aspects of ebooks such as the school library market and accessibility issues,” said Carrie Russell, lead ALA staffer for the business models subgroup.

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